What Is BSU and Is It Worth Saving Through It?
Are you planning to buy an apartment or house in Norway? One way to save money for this purpose is BSU, a special home savings account for young people. Having one comes with tax relief, but the money must be used according to specific rules.
In this article, we explain how BSU works, how much you can deposit in 2026, who is eligible for the relief, and when this type of saving is genuinely worthwhile.
How does a BSU account work?
BSU is short for Boligsparing for ungdom, meaning home savings for young people. It is a bank account intended for buying, building, repaying a mortgage, or upgrading your own apartment or house.
You can make deposits into BSU until the end of the tax year in which you turn 33. From the year in which you turn 34, new deposits are no longer allowed. However, you do not have to close the account or withdraw the accumulated funds immediately.
The key features of the account are presented in the table below:
| Rule | BSU in 2026 |
|---|---|
| Maximum annual deposit | 27,500 NOK |
| Total limit for deposited capital | 300,000 NOK |
| Tax relief | 10% of deposits made during the year |
| Maximum annual relief | 2,750 NOK |
| Final year for making deposits | The year in which you turn 33 |
| Requirement to make regular deposits | None, you choose the years and deposit amounts yourself |
Interest does not count towards the 300,000 NOK limit. The account balance, including interest, may therefore exceed this amount. The interest rate is set by the bank and may change.
One person can have only one BSU account and, as a rule, can open it only once. Closing the account means that you will not be able to open a new BSU account later. The account can be transferred to another bank, but the money must be transferred directly between the banks.
Tax relief and deposit limits in 2026
A deposit of 27,500 NOK can reduce your tax by up to 2,750 NOK. This is a deduction from the calculated tax, not a deduction from income. This means that it directly reduces income tax or national insurance contributions.
For a deposit to qualify for tax relief for 2026, the money must:
- be in the account no later than 31 December 2026,
- remain in the account across the turn of the year,
- fall within the annual and total BSU limits.
Any unused annual limit is lost. If you deposit 10,000 NOK in 2026, you will still be able to deposit a maximum of 27,500 NOK in 2027, not 45,000 NOK.
The amount of relief is limited by the tax you have to pay. If a deposit theoretically gives you 2,750 NOK in relief, but your tax only allows you to deduct 1,500 NOK, you cannot carry the remaining 1,250 NOK over to the next year.
A Norwegian bank reports deposits, interest, and withdrawals to Skatteetaten. The relief should appear automatically in your skattemelding (tax return), but you are responsible for checking that the information is correct. If a deposit is missing, first ask the bank to submit or correct the report.
In 2026, the relief is not automatically included in the initial calculation of tax advance payments. You can receive it in your annual tax settlement or change your skattekort (tax card) earlier. If you want to make sure that the relief has been reported correctly, we will be happy to check your skattemelding and skatteoppgjør.
Who is eligible for BSU tax relief?
Eligibility for the relief depends on your age, tax arrangement, tax payable, and properties you own.
| Requirement for 2026 | What it means in practice |
|---|---|
| Age | You turn 33 no later than in 2026 |
| Tax arrangement | You are taxed under rules that allow you to use tax reliefs |
| Tax payable | You have income tax or contributions from which the relief can be deducted |
| No home ownership on 31 December | You do not own an apartment or house in Norway or abroad |
| Correct deposit | The money remains in the BSU account across the turn of the year |
A property in Poland may exclude you from the relief
If you own an apartment, house, or a share in a residential property on 31 December 2026, you are not entitled to BSU tax relief for that year. This applies to properties in Norway and abroad, including Poland.
Partial ownership also matters, for example an inherited share in an apartment. Marital community property alone does not determine ownership. What matters is who actually owns the property.
Owning a hytte or another recreational property does not in itself exclude you from the relief. However, it does not allow you to use BSU funds to buy or renovate it. We discuss property reporting rules in more detail in the article Property in Norway - sales, ownership, taxes.
BSU and kildeskatt
A person taxed under the kildeskatt (PAYE) system cannot use BSU tax relief. In 2026, the standard PAYE rate is 25%, and 17.4% without Norwegian national insurance contributions. The income limit for this system is 725,050 NOK.
You can choose to be taxed under the standard rules, but the decision should be assessed based on all income and reliefs, not just BSU. You can read more about this system in the article Kildeskatt 25% (PAYE) - who is it worth it for? Key information.
Is saving through BSU worth it?
BSU is usually worthwhile if you are eligible for the full relief, do not own a home, are taxed under the standard rules, and plan to use the savings for your own permanent residence.
With the maximum deposit, the result may look like this:
| Benefit component | Example amount |
|---|---|
| BSU deposit | 27,500 NOK |
| 10% tax relief | up to 2,750 NOK |
| Interest at an example rate of 6.35% for a full year | approximately 1,746 NOK gross |
| Total benefit before tax on interest | approximately 4,496 NOK |
In this simplified example, the relief and interest correspond to approximately 16.35% of the deposited amount. The actual result will be lower if you deposit the money during or towards the end of the year. Interest is also taxable capital income.
The BSU interest rate is not set by law. Before making a deposit, compare the current terms offered by banks. After you turn 33, the bank may lower the interest rate, so it is worth checking regularly whether it remains favourable. Deposits in a Norwegian bank are covered by the deposit guarantee up to 2 million NOK per person in one bank, including other accounts held with the same institution.
What you can use the money for
You can use BSU funds for your own permanent apartment or house, including one located in Poland.
| Permitted use | Prohibited use |
|---|---|
| Buying or building your own apartment or house | Buying a hytte or recreational property |
| Down payment and acquisition costs | Buying an investment apartment |
| Repaying mortgage principal and interest | Renovating someone else's or an additional property |
| Repaying shared debt in a housing cooperative | Buying furniture and freestanding appliances |
| Renovation, repairs, and upgrades to your own home | Buying a camper, caravan, or mobile home |
| Heat pump, solar panels, or a car charger | Expenses unrelated to your own home |
If you use the money before moving in, the property must become your permanent residence within a reasonable time. Moving in within 6 months is considered reasonable.
You must keep documents proving the purpose of the withdrawal, such as a purchase agreement, mortgage documentation, invoices, or renovation receipts. The withdrawal should have an appropriate time connection to the expense. A period of up to approximately 2 years between incurring the cost and withdrawing money from BSU is usually accepted.
When is it better to be cautious?
BSU may not be the right solution when:
- you do not have enough tax liability to use the relief,
- you are taxed through PAYE,
- you own an apartment or a share in a residential property,
- you may need the money for expenses unrelated to housing,
- you do not have a reserve for unexpected costs,
- you are repaying high-interest consumer debt,
- you plan to buy a hytte, an investment property, or an apartment used only while working away from your permanent residence.
Before making a deposit, it is therefore worth keeping a liquid financial reserve and repaying expensive consumer debt. Only then should you put into BSU an amount for which you can actually use the tax relief.
FAQ - frequently asked questions
Summary
- In 2026, you can deposit a maximum of 27,500 NOK into BSU and receive up to 2,750 NOK in tax relief.
- The relief is available to a person who meets the tax requirements and does not own an apartment or house on 31 December, including in Poland.
- BSU is primarily worthwhile when you use the full relief, receive a favourable interest rate, and use the money for your own permanent home.
- A withdrawal for a prohibited purpose results in the tax reliefs used being added back to your tax and prevents further saving in BSU.
If you need help settling your BSU tax relief, call us: +47 21 38 38 21. We will help you check whether the relief has been included correctly.
Article author: Marcin - marcin@efirma.no
